In the Real Business Cycle Framework, a Technology Shock That

question 127

Multiple Choice

In the real business cycle framework, a technology shock that increases investment demand and the demand for loanable funds leads to a ________ quantity of saving and a ________ real interest rate.

• A) higher; higher
• B) higher; lower
• C) lower; higher
• D) lower; lower

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Definitions:

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).

Deep Depression

A severe state of mental health characterized by intense feelings of sadness, hopelessness, and a lack of interest in life.

Negative Thoughts

Mental processes or statements that reflect pessimism, criticism, or defeat, often affecting one's outlook and mental health.

Alcohol-Related Diseases

Health conditions directly influenced or caused by the excessive consumption of alcohol, such as liver cirrhosis, alcohol use disorder, and certain types of cancer.